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7 Costs To Consider Before Taking Your Startup Public

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. There are real ongoing costs of maintaining a public company. PwC estimates that public companies incur an average of $1.5

Cost 319
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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Here’s why.

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Why Uber is The Revenge of the Founders

Steve Blank

20th Century Tech Liquidity = Initial Public Offering. In the 20th century tech companies and their investors made money through an Initial Public Offering (IPO). In the 20th century the only way the founder made any money (other than their salary) was when the company went public or got sold.

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6 Risks For Taking A Side Door Into A Public Exchange

Startup Professionals Musings

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Most public shells ready for sale are not listed on a national securities exchange, but are instead traded in a less glamorous setting, such as the OTC Bulletin Board.

Merger 261
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A New Era For Entrepreneurs And Startups Has Begun

Startup Professionals Musings

Thus a record number of entrepreneurs (and employees) are getting rich. Initial Public Offerings (IPO) are back as an exit strategy. According to a report just out, a record 156 operating companies went public in the U.S. Cost of entry for a startup is at an all-time low.

IPO 273
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10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

Thus a record number of entrepreneurs (and employees) are getting rich. Initial Public Offerings (IPO) are back as an exit strategy. Cost of entry for a startup is at an all-time low. Two of these, Uber and Xiaomi, are already above $40 billion. No wonder 90% of the successful startups still bootstrap.

IPO 120
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6 Considerations For Going Public Via Reverse Merger

Startup Professionals Musings

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. The cost of the shell, plus the cost of navigating the process, can add up to a half-million dollars, depending on the shell company, according to LawCast , a law firm based in West Palm Beach, Florida.

Merger 303